"We're very pleased with the progress. We've sold a
little over a million Zunes. In the category we're in, the hard-disk-based
category, we've got about 10 percent market share," said Bach. "It's
a good start. It's not an overwhelming start. I'm not going to pretend it's
some gigantic move."

Microsoft is expecting a rather large uptick in sales
leading up to the 2007 holiday season. The company is building a new
manufacturing plant in China which will produce a second-generation
HDD-based Zune along with a flash-based Zune.

"As to the Wi-Fi, we think the idea of these devices
being connected where you want them connected is very important. That's why we
shipped the original Zune with Wi-Fi built in, remarked Bach. "The cool
thing about that is, the innovation can all be in software. Wi-Fi is an
important area. We'll see how that SanDisk project does."

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Don't know what you're talking about. Third party ink for printers are abundant on the web and even in local stores. Even in major supermarket chains (e.g. - Krogers). There may be limits to what they can do to printer manufacturer made cartridges (is HP liable for failure of a cartridge refilled by a third party that leaks and ruins the HP printer?), but third party inks abound and AFAIK are all legal so long as they're not using mfgr owed patents w/o license (which is something true in all businesses).